OEG plans further growth under “intense” expansion plans

OEG plans further growth under “intense” expansion plans

Friday, July 31, 2015 Totally Gaming
Madis Jääger has expansion plans in several countries

Madis Jääger, chief executive of Olympic Entertainment Group (OEG), has told TotallyGaming.com that the land-based casino company plans to follow up on its acquisition of a Latvian operator SIA Garkalns by expanding its services in other countries around Europe.

Earlier this week, OEG confirmed it had agreed a deal to acquire a 100 per cent stake in SIA Garkalns, an operator that also owns a 100 per cent stake in the SIA Port-Nevada subsidiary.

The deal, which remains subject to various ordinary conditions, will increase the number of OEG-owned casinos in Latvia to a total of 57. OEG already has a major presence in the country, with revenue from its Latvian business during the first half of the year amounting to €26.1m ($28.8m) of the total €72.2m generated by the whole company in the period.

Speaking to TotallyGaming.com about the decision to acquire SIA Garkalns, Jääger said the move forms part of a wider expansion strategy, under which OEG plans to significantly strengthen its operations across Europe.

“In addition to the acquisition in Latvia, we are working on a large project to enter the market in Malta and at the same time we are building our new Estonian flagship casino and the first Hilton in the Baltics,” Jääger said.

“The acquisition in Latvia follows our strategy by which we are constantly on the lookout for promising expansion opportunities both in new markets as well as in countries where the brand of Olympic Casino is already well-known and highly valued.

“Two years ago, OEG acquired a much smaller competitor in Latvia and that had only a positive effect on the company’s results. It took close to a year to bring the previously acquired casinos in Latvia into compliance with the standards of Olympic Casino and now we are already enjoying the benefits of the acquisition.

“Being one of the reasons behind our recent strong results in Latvia, this acquisition gave us confidence that we are able to gain significant economical effect from the current transaction, too.”

Other key results from OEG in the first half included a jump in earnings before interest, tax, depreciation and amortisation (EBITDA) from €16.7m to €18.4m, while net profit increased from €10.3m to €11.8m.

OEG also recorded year-on-year revenue growth from its operations in Italy, Poland, Estonia, Slovakia and Lithuania, with Belarus the only country in which OEG is present to suffer a decline in revenue.

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